Eight out of 10 directors receive bonuses for sub-standard performance, a
survey has revealed.
Sharing in the Boardroom found a lack of information about remuneration
schemes means shareholders find it impossible to establish a clear link between
directors’ pay and performance.
The PricewaterhouseCoopers research, based on annual reports and accounts
from 128 firms in the lower half of the FTSE 500, shows 82 per cent of
directors get bonuses for below-par work.
The proportion has risen since a similar survey last year, when the figure
was 75 per cent.
Another piece of research released last week shows that executive pay has
risen by 8 per cent in the past year.
Those in the top 30 FTSE 100 companies received median basic salaries of
more than £600,000 last year plus a £200,000 bonus.
The research, carried out by Bacon & Woodrow, Deloitte & Touche, New
Bridge Consultants and SCA Consulting, included figures from 95 companies.